English

Market share is a measure of the portion of a market controlled by a particular company or product. It is a key indicator of a company’s competitiveness and is often used in strategic planning, marketing, and business development. Market share can be calculated in terms of revenue or units sold. The basic formula for calculating… read more »

Revenue Growth is a financial metric that measures the increase (or decrease) in a company’s sales from one period to another. It’s expressed as a percentage and indicates the rate at which a company’s revenue is increasing or decreasing for a specified period. The formula to calculate Revenue Growth is: Revenue Growth = [(Current Period… read more »

“Cash Reserves in Days”, also known as the “Days of Cash on Hand”, is a financial metric used by organizations (especially non-profit ones) to evaluate their liquidity or financial stability. It represents the number of days an organization could continue to operate using only its available cash and marketable securities, without any additional income or… read more »

The Cash Conversion Cycle (CCC) is a key financial metric that helps a company understand the time it takes to convert its investments in inventory and other resources into cash flows from sales. In essence, it measures how long each net input dollar is tied up in the production and sales process before it gets… read more »

Days Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes a company to collect payment after a sale has been made. It is a measure of the effectiveness of a company’s credit and collection policies and efficiency in managing its accounts receivables. The formula to calculate Days Sales… read more »

Days of Inventory Outstanding (DIO), also known as “days inventory”, is a financial metric that measures the average number of days a company holds inventory before selling it. This metric is used to evaluate the efficiency of a company’s inventory management. The formula to calculate Days of Inventory Outstanding is: Days of Inventory Outstanding =… read more »

The Overdues Ratio, also known as the Delinquency Ratio, is a financial metric used to assess the percentage of loans in a lender’s portfolio that are delinquent, meaning the borrower is late in making payments. Overdues can apply to any type of debt, such as credit card debt, mortgages, or corporate loans. The Overdues Ratio… read more »

Operating Cash Flow (OCF), often referred to as cash flow from operations, is a measure of the amount of cash generated by a company’s normal business operations. It indicates whether a company is able to generate sufficient positive cash flow to maintain and grow its operations, or it may require external financing for capital expansion…. read more »

“Average Days Delinquent” (ADD) is a financial metric that companies use to measure the average number of days that a customer’s account balance has been overdue. This metric is often used in accounts receivable management to assess the effectiveness of a company’s credit and collection policies. The formula to calculate Average Days Delinquent is: Average… read more »

The cash burn rate is a measure used primarily by start-ups and early-stage companies to determine the rate at which they are spending (or “burning”) their cash reserves. It’s a measure of negative cash flow, and is often quoted as a monthly rate or a number of months. This measure is important for these companies… read more »